title: Child allowances, fertility, and chaotic dynamics.
abstract: This paper analyzes the dynamics in an overlapping generations model with the provision of child allowances. Fertility is an increasing function of child allowances and there exists a threshold effect of the marginal effect of child allowances on fertility. We show that if the effectiveness of child allowances is sufficiently high, an intermediate-sized tax rate will be enough to generate chaotic dynamics. Besides, a decrease in the inter-temporal elasticity of substitution will prevent the occurrence of irregular cycles.
authors.affiliation: Department of Economics, National Taiwan University, Taipei, Taiwan. hjc@ntu.edu.tw
authors.forename: Hung-Ju
authors.initials: HJ
authors.lastname: Chen
authors.forename: Ming-Chia
authors.initials: MC
authors.lastname: Li
mesh_terms: D000385:Aid to Families with Dependent Children / Q000191:economics*; D002648:Child; D004548:Elasticity; D005298:Fertility; D006801:Humans; D018803:Models, Economic; D017711:Nonlinear Dynamics; D011158:Population Growth; D043762:Reproductive Behavior; D013660:Taxes / Q000191:economics*; D014481:United States